<p>
 The asset growth effect is based upon the reasoning that high asset growth stocks underperform stocks with low asset growth. Some papers suggest that the return premium achieved by low asset growth stocks is consistent with the compensation for risk. There are two popular arguments to suggest this return premium. One arguments is that as firms grow, the asset mix of the firm becomes less risky as assets-in-place displace the value of assets the firm's expected to invest in the future. The second argument is that there is a systematic market mispricing of growing businesses due to the extrapolation of past gains to growth for high asset growth companies. 
 </p>
 <p>
 This strategy will take a long position in low asset growth companies, and a short position in high asset growth accompanies. It is important to note that this strategy requires fundamental data from the current and past year to perform its analysis. As a result, this strategy would need a year in live trading to determine signals.
</p>